Objective 4 - jobactive organisations delivering quality services

The quality of services provided to job seekers and employers is directly related to other jobactive objectives. It ensures job seekers are getting the help they need, and that employers are being provided with a valuable service. High quality service delivery also ensures the Australian public and job seekers are getting value for the money spent on employment services. The performance measures related to Objective 4 reflect the extent to which the department’s approach is directly influencing the achievement of the targets.

Table 4. Results for Objective 4
Indicator Target Result
Proportion of employers satisfied with the assistance provided by a jobactive
organisation
80% 82%
Proportion of jobactive organisations that meet the service delivery
requirements
80% 81%

Proportion of employers satisfied with the assistance provided by a jobactive organisation

By tailoring their services to employers’ needs, jobactive providers are better positioned to help job seekers achieve job placements, while providing a valuable service for employers.

Data for this measure is sourced from the department’s Survey of Employers’ Recruitment Experiences from the more than 700 employers who could recall the name of a jobactive provider they had used in the last 12 months.

The measure is the proportion of employers who were satisfied with the assistance provided. In the year to April 2018, (latest available data) 82 per cent of employers were satisfied with the assistance provided by a jobactive provider. This is in line with the 80 per cent target.

Proportion of jobactive organisations that meet the service delivery requirements

jobactive providers are monitored to ensure they are making available the additional employment services to job seekers, employers and other stakeholders to which they committed as part of their tailored service delivery offers.

Providers’ delivery of these additional commitments is monitored through the department’s contract management process throughout the term of the contract. The measure is calculated as the proportion of jobactive providers that meet 80 per cent or more of their assessed commitments over the financial year.

In 2017–18, 81 per cent of jobactive providers met 80 per cent or more of their assessed commitments, thereby meeting the performance target.

The ANAO noted in its performance audit report: implementation of the annual performance statements requirements 2016–17 (tabled in Parliament on 28 March 2018) that the measure implied that it reflects the proportion of jobactive providers fully complying with their service delivery requirements. Rather, it measured the proportion of providers that meet the requirements.

The department has revised the methodology for this performance measure for 2017–18. The measure reported the proportion of jobactive providers that met or partially met 80 per cent or more of their assessed commitments over the jobactive contract to date. In 2017–18, the measure is reported as the proportion of jobactive providers that fully met 80 per cent or more of their assessed commitments over the financial year.

The department has also revised the methodology for this performance measure for 2018–19. The measure will assess the proportion of assessed commitments made by all jobactive providers (in their service delivery plan and service offer commitments) that are met. All service delivery plan and service offer commitments will be assessed over the two years 2018–19 and 2019–20.

jobactive star ratings

In addition to assessing program level performance measures and targets, the department calculates quarterly star ratings to assess the relative performance of individual provider sites nationally. They are published on the jobactive website and the department’s website to help job seekers and employers when choosing a provider. Sites rated with 3-stars perform around the national average, 4-star and 5-star sites achieve better than average results, while 1-star and 2-star sites are below average.

The ratings drive continuous improvement in provider performance against the assessed performance measures over a rolling two-year period. These measures focus on achieving sustained employment placements by the job seekers being assisted, and the extent to which job seekers are undertaking activities to meet their annual requirements. Higher weightings are attributed to outcomes for the most disadvantaged job seekers. The Indigenous Outcomes Incentive was introduced to the star ratings methodology from the December 2017 release. This assesses the outcome rates of individual providers for Indigenous job seekers in comparison with non-Indigenous job seekers, resulting in positive adjustments to the ratings assessment if the outcome rates for Indigenous job seekers are higher, and negative adjustments if they are lower.

The ratings account for differences between sites in local labour market conditions, and the personal factors of the job seekers being helped, such as education level, length of unemployment and workforce experience.

Program assurance

As foreshadowed in the 2016–17 Annual Report, the department in January 2018 released its enhanced Employment Services Assurance Strategy. The strategy was strengthened to deliver improved oversight and planning of assurance activities across employment services programs. The strategy is principles-based to reduce the level of prescription and complexity, allowing it to be applied and adapted appropriately to new circumstances, policies and programs. It aligns better practice principles with the implementation of the department’s Assurance Objectives for employment services.

The cornerstone of payment integrity assurance for jobactive, the Rolling Random Sample, continues to mature with almost 11,000 claims reviewed throughout 2017–18. Improvements to the Rolling Random Sample process have meant that results and feedback to providers are now delivered within six weeks of the commencement of an assessment cycle. This has given jobactive providers an opportunity to implement more timely improvements to claiming practices and to develop a better understanding of Deed and program requirements. jobactive providers have delivered an overall improvement in compliance rates throughout the period of the Deed, which in turn has allowed the department to reduce the frequency of Rolling Random Sample cycles from four to three annually.

The Compliance Indicator is a measure of each jobactive provider’s compliance with the jobactive Deed 2015–2020 and guidelines in submitting claims for payment and other relevant processes. It is a score between zero (0) which indicates absolute non-compliance and one hundred (100), where one hundred represents perfect compliance based on the aggregated results of compliance reviews finalised in the preceding 12-months. The improvement in jobactive provider compliance, evident in the Rolling Random Sample results, is reflected in the continued increase in the average Compliance Indicator score increasing from 91.4 with the June 2017 release of the star ratings to 96.1 for the June 2018 star ratings release.

The Quality Assurance Framework was implemented on 1 July 2015 as part of the jobactive Deed 2015–2020. It sets the minimum standard of quality for jobactive providers. Certification under the Quality Assurance Framework assures the department that providers have in place policies and processes to support service delivery. The second round of Quality Principles Audits, which includes a third party Quality Principles Audit, commenced in 2017–18 for all jobactive providers. During 2017–18, 25 providers achieved or maintained their Quality Assurance Framework certification. The remaining 17 providers are expected to achieve or maintain certification before the end of 2018.

Throughout 2017–18, $2,493,647 net was recovered from across the employment services that the department administers. This is equivalent to 0.14 per cent of the monies spent on employment services over the same period and is smaller than the proportion for 2016–17 of 0.24 per cent. This proportion is calculated as the total dollars recovered in the year against employment services contracts, divided by the total Program 1.1 Administered Expenses set out in Table 28 – Agency Resources Statement – of this Annual Report. The reduction reflects the improved compliance observed through the Rolling Random Sample, achieved through provider education on addressing common errors being made and systems enhancements to support improved payment integrity.